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Jokowi calls on his ministers to stay alert about the economic slowdown
President Joko âJokowiâ Widodo has called on his ministers, particularly those who deal with the countryâs economy, to stay alert about the current economic slowdown, although the condition is now far better than the it was in 1998 and 2008
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resident Joko 'Jokowi' Widodo has called on his ministers, particularly those who deal with the country's economy, to stay alert about the current economic slowdown, although the condition is now far better than the it was in 1998 and 2008.
'The current economy is far better than the conditions in 1998 and 2008. But I need to say that we have to be careful and keep alert,' President Jokowi said while opening the Cabinet meeting at the Presidential Office in Jakarta on Wednesday.
In 1998, Indonesia was seriously affected by the Asian financial crisis, during which the rupiah dropped to 17,000 for every dollar. A number of banks were closed down. In 2008, Indonesia was affected by the global economic crisis, but with less severity.
The President also gave instructions to the ministers to deregulate and remove the red tape hampering investments in Indonesia. The President believed that deregulation could improve the economic conditions quickly.
'We are racing against time,' President Jokowi was quoted by kompas.com as saying.
According to the President, Indonesia's capital adequacy ratio is above 20 percent, which is better than many Asian countries and the value of the foreign exchange reserve is still US$107 billion. Meanwhile, the ratio of foreign debt is still above 34 percent, compared to the condition in 1998, which was 120 percent.
'But these conditions should not make us careless. We should keep alert. All options should be explored,' said the President, calling on the ministers to meet with executives of Indonesia's Chamber of Commerce and Industry (Kadin) and other business associations this week.
Such meetings, said the President, are needed for the ministers so that they get input from business communities about the regulations, which still hamper the investment climate in Indonesia. (bbn) (++++)
